Lido Finance: What soaring monthly users mean for you

• Lido Finance has been averaging 13,000 users monthly.
• LDO has maintained $2 despite slight losses.

Lido Finance [LDO] is renowned for being a popular staking platform, with its Ethereum [ETH] staking option being particularly widespread. As per a tweet on the 5th of November by Token Terminal, Lido Finance has been averaging more than 13,000 active users each month.

?@LidoFinance sees ~13k unique depositors on a monthly basis pic.twitter.com/w5Jev5i4cY

— Token Terminal (@tokenterminal) November 5, 2023

As of press time, this number had crossed 14,000. So, what has been the impact on network fees?

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Lido Finance sees double-digit monthly users

As per AMBCrypto’s analysis of the fee chart on DefiLlama, despite the above numbers, there has not been a significant spike in the DeFi protocol’s fees of late.

Most of the notable spikes occurred between March and May this year, in the lead-up to and following the activation of ETH withdrawals. During these spikes, fees on the Lido Finance network reached over $3 million.

As of press time, the fees had exceeded $1.7 million.

Source: DefiLlama

Furthermore, an examination of the Total Value Locked (TVL) chart on the network showed increased activity. Between October and November, the TVL had surged by over $2 billion. Also, as of this writing, the figure was over $16.8 billion.

While the price of its token, LDO, could contribute to the growing TVL, user activity played a significant role as well.

LDO loses grounds on gains

AMBCrypto’s analysis of the daily timeframe chart indicated that LDO concluded the previous week on a positive note. The week ended with a 2% increase in value, and LDO was trading above $2. 

Source: TradingView

How much are 1,10,100 LDOs worth today?

However, the new week began with a slight loss, which persisted as of press time, with a minor loss of less than 1%. But despite these recent setbacks, trend lines suggested that LDO was in a bullish trend.

Additionally, both the short and long Moving Averages (yellow and blue lines) were acting as support at different price levels at the time of publication.